• Meta will become one of Amazon’s largest customers for the Graviton chip under the agreement.
• The duo plan to spend close to $400 billion this year on building out their respective AI infrastructure.
• Both Amazon and Meta are reporting earnings on April 29, after markets close.

Tech behemoths Meta Platforms (META) and Amazon (AMZN) struck a chips deal on Friday as the companies work together to bring online crucial data center infrastructure across the U.S. to power artificial intelligence.

Under the terms of the agreement, Meta will deploy “tens of millions” of Amazon’s AWS Graviton cores across its data centers and become one of its top customers for the chips.

Financial terms of the agreement were not disclosed, but news reports have described it as a “multi-billion dollar deal.”

META opened nearly 1% lower while AMZN about 2% higher on Friday on the NASDAQ.

Why This Matters: AI Is Moving Beyond GPUs

The partnership reflects a collaborative stance by the two “Magnificent 7” companies, who are coming together to advance each other’s missions in the lucrative AI sector rather than compete without each other’s support.

“The deal reflects a shift in how AI infrastructure gets built: while GPUs remain essential for training large models, the rise of agentic AI is creating massive demand for CPU-intensive workloads,” Amazon said in a public statement. “The chips will power various workloads at Meta, including supporting the company’s AI efforts.”

Big Tech’s $400 Billion AI Bet 

It is notable that both companies plan to spend close to $400 billion this year on building out their respective AI infrastructure, as demand for faster computing capabilities rises.

The United States continues to lead the global data center market, with over 3,000 data centers online and at least 1,500 more in development, according to Pew Research. Amazon alone has about 900 data centers worldwide, Bloomberg reported in November last year. Meta’s website said it has about 216 data centers, including those under construction globally.

META, AMZN Stocks: How Did Retail Traders React?

On Stocktwits, retail sentiment about the META was ‘bearish’ amid ‘low’ messaging volumes, and on AMZN was ‘bullish’ with ‘high’ chatter over the last 24 hours. 

One user on the platform expects AMZN stock to climb on the news of the partnership.

Another user expects META stock to reach $800 after the company reports earnings next week.

All Eyes On Meta Earnings Next Week 

Both Amazon and Meta are reporting earnings on April 29, after markets close.

For Amazon, the first-quarter revenue estimate is $177.16 billion, and earnings per share are $1.65, according to data from Fiscal AI. For Meta, the revenue estimate is $55.54 billion, and the EPS is $6.74.

AMZN stock has outperformed the S&P 500 so far this year and over the past 12 months, while META has not.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: MXL Stock On Track To Record Best Single-Day Gains – Optical Products Demand For Data Centers Boosts Q1 Report